{"id":473886,"date":"2021-04-08T16:21:16","date_gmt":"2021-04-08T20:21:16","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=473886"},"modified":"2021-04-08T16:21:16","modified_gmt":"2021-04-08T20:21:16","slug":"stem-provides-shareholder-update-and-announces-preliminary-gross-revenue-of-us12-88-million-for-the-second-quarter-of-2021-an-increase-of-456-year-over-year-and-quarterly-gross-margin-of-approximate","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/stem-provides-shareholder-update-and-announces-preliminary-gross-revenue-of-us12-88-million-for-the-second-quarter-of-2021-an-increase-of-456-year-over-year-and-quarterly-gross-margin-of-approximate\/","title":{"rendered":"Stem Provides Shareholder Update and Announces Preliminary Gross Revenue of US$12.88 Million for the Second Quarter of 2021, an Increase of 456% Year-Over-Year and Quarterly Gross Margin of Approximately US$5.23 Million"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n BOCA RATON, Fla.<\/span>, April 8, 2021<\/span> \/PRNewswire\/ —\u00a0Stem Holdings, Inc. (OTCQX: STMH CSE:STEM) (the “Company<\/b>” or “Stem<\/b>“), the first multi-state, integrated cultivation and omnichannel technology cannabis company, is providing a business update including select preliminary financial results for the quarter ending March 31, 2021<\/span>, the first full quarter of combined operations since the acquisition of Driven Deliveries, Inc. (“Driven Deliveries<\/b>“) in December 2020<\/span>, as disclosed in the Company’s press release dated December 30<\/span>, 2020.\u00a0 <\/p>\n

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\n \"Cannavore
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\n Adam Berk<\/span>, Chief Executive Officer of Stem, commented, “Stem is\u00a0driving synergistic results as the Company successfully integrated its most recent acquisitions of Driven Deliveries and the Foothill Health and Wellness dispensary in Sacramento<\/span>, with record sales, accretive margins, and reduced SG&A. Driven Deliveries services 92% of California’s<\/span> population \u2013 the largest cannabis market in the world1<\/sup>\u00a0\u2013 and is expected to drive expansion of Stem’s brands and products in California<\/span> as well as in targeted expansion markets, including Oregon<\/span>. Our plan for expansion into new markets is supported by our strong, lean infrastructure and execution capability. Following the acquisition of Driven Deliveries, we have integrated our accounting and finance and legal teams, and engaged Fyllo\u2122 Compliance Cloud technology enterprise-wide to support swift expansion.”<\/p>\n

The Company plans to report its financial results for the quarter ended March 31, 2021<\/span> on or about May 15, 2021<\/span>. The Company is projecting quarterly gross revenue of approximately US$12.88 million<\/span> (an improvement of approximately 456% as compared to the quarter ending March 31, 2020<\/span>) and quarterly gross margin of approximately US$5.23 million<\/span>.2<\/sup><\/p>\n

\n For the quarter ended March 31, 2021<\/span>, the Company realized an increase in total units sold, number of transactions, and average order size as compared to the quarter ended March 31, 2020<\/span>:
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\n Dispensaries<\/b>
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\n vs. 2020<\/b>
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\n E-Commerce <\/b>
\n (Budee\u2122) <\/b>
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\n vs. 2020<\/b>
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\n Total Dispensaries \u2013 185<\/span>\n <\/p>\n<\/td>\n

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\n +32.1%<\/span>\n <\/p>\n<\/td>\n

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\n Total Units Sold \u2013 161,700<\/span>\n <\/p>\n<\/td>\n

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\n +81.5%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Total Units Sold \u2013 257,100<\/span>\n <\/p>\n<\/td>\n

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\n +45.6%<\/span>\n <\/p>\n<\/td>\n

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\n Transactions \u2013 75,700<\/span>\n <\/p>\n<\/td>\n

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\n +97.0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Transactions \u2013 59,500<\/span>\n <\/p>\n<\/td>\n

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\n +16.7%<\/span>\n <\/p>\n<\/td>\n

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\n Average Order Size \u2013 US$67.00<\/span>\n <\/p>\n<\/td>\n

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\n +17.5%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Average Order Size \u2013 US$58.28<\/span>\n <\/p>\n<\/td>\n

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\n +33.3%<\/span>\n <\/p>\n<\/td>\n

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The Company expects to increase its canopy in Oregon<\/span> during April 2021<\/span> by 10,000 square feet and it anticipates incremental gross revenues of US$8.0 million<\/span> and 50% gross margin over the next 12 months as a result of such expansion. The Company also expects to increase its productivity through greater automation and CAPEX investment for concentrates in the Company’s new butane hash oil laboratory, as well as through other margin-accretive measures.<\/p>\n

\n Recent Highlights:
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